Home Back Issues February 2009 Deal Watch: Freightliner lands bittersweet military order

Deal Watch: Freightliner lands bittersweet military order

| Print |  Email
Archives - February 2009
Sunday, February 01, 2009
Freightliner.jpg

Since that chilly autumn day back in October when Daimler Trucks North America announced it would be shuttering its Portland plant come June 2010, little notice has been given to the company outside its inevitable fate: the 900 manufacturing jobs gone, including 190 cut Jan. 30; the work shifted to Daimler’s plants in Mexico and North and South Carolina; the more than 75 years of Freightliner production in Portland coming to a halt.

But for the moment, anyway, work rolls on at the Portland plant. Employees are building dump trucks and semis from two of the company’s remaining brands, Freightliner and Western Star, and this past December, DTNA won a sizable contract to build more than 600 heavy-duty tractor-trailers for the U.S. Army.

 

The contract, worth $129 million, is for 603 M916A3 Light Equipment Transporters. Similar to Daimler’s civilian tractor-trailers, the M916 is used primarily to tow semi-trailers transporting engineering and construction equipment. The trucks can also be outfitted with armor plating for use in combat zones, as many from past orders have been.


In 2007, the company received a $166 million order from the Army for M916s, which capped off a seven-year, $725 million contract. In addition, according to the Department of Defense, Daimler was awarded a $170 million contract last April not only for 600 of the M916s, but for 200 of its dump trucks. That work is to be completed by Halloween of 2009, while the latest order is expected to wrap up about a month earlier.

There’s been no definitive word yet on when the company will stop taking orders for the Portland plant or exactly where the production of the M916 will end up after June 2010, though it is likely to end up at Daimler’s plants in either Santiago, Mexico, or North or South Carolina.

JON BELL

 

MERGERS AND ACQUISITIONS
PRICE EXP. CLOSE BUYER / PARENT (HQ) SELLER / PARENT (HQ) ANNOUNCED
$29.6M Q4 2008 BioMerieux (France) PML Microbiologicals (CA) 12/8
ND Q4 2008 Beecher Carlson (GA) Sage Insurance (Bend) 12/15
ND Q4 2008 Brown & Brown (FL) Stewart & Tunno Insurance Agency (Portland) 12/8
ND Q4 2008 Employee Benefit Management Services (MT) Kipp & Company Administrators of Portland (Portland) 12/10
ND Q4 2008 John L. Scott Real Estate (Portland) Ken Hoffman Realtors (Portland) 12/2


REAL ESTATE TRANSACTIONS
PRICE BUYER / PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) ANNOUNCED
$44M Five Star Quality Care (MA) Seven retirement homes (NC, SC)/Sunwest Management (Salem) 12/29
$8.5M Deacon Development Group (Portland) 96,900 sq. feet/office (Tigard)/Farmers Insurance (CA) 12/5
$7.9M Yee Hop Realty (HI) 69,000 sq. feet (Portland)/Patterson Ranch (CA) 12/5
$6M University of Portland (Portland) 35 acres on Willamette River (Portland)/Triangle Park (Portland) 12/18
$4.4M Oakgrove Village (Portland) Patrician Square Apartments (Milwaukie)/D. Kornbum (WY) 12/1
$2M Pacific Northwest Properties (Beaverton) Bethany Business Park II (Beaverton)/MRD Properties (Lake Oswego) 12/29
$1.8M Ferdinand Beernink and Judith Young Shari’s Restaurant (The Dalles)/Shari’s Management (Beaverton) 12/19
$1.3M FBR Wealth Mng. Group (Portland), Accountax of Oregon (Tigard) Office building (Tigard)/Pfaffle Office (Portland) 12/29
$1.2M Boris and Jessica Dimitrov (Vancouver) Broadway City Building (Vancouver)/Broadway City Building (Vancouver) 12/4
$817,000 Madsense 2,600 sq. feet (Beaverton)/Elliot Investments (Beaverton) 12/18
$720,000 Pat Lawrence 3,900 sq. feet (Portland)/Marvin Osman 12/5
$500,000 WG Development (Eugene) Downtown half-block (Eugene)/City of Eugene 12/6
$335,000 DeBraTre (Beaverton) 2,400 sq. feet (Beaverton)/Stutzman Construction (Portland) 12/23
ND Mary Gertrude Brandsen Trust (Portland) 2,000 sq. feet (Beaverton)/Jerry Lee Condray Trust 12/1
ND Jeff and Chris Omert 12 units at Brookside Apartments (Gladstone)/Charles Padot 12/1


CAPITAL RAISING
PRICE (TYPE) COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) ANNOUNCED
$130M (bond sale) Portland General Electric (Portland)/Jim Piro Series of institutional buyers 12/24
$129M (truck order) Daimler Trucks North America (Portland)/Chris Patterson U.S. Army 12/9
$125M (line of credit) Portland General Electric (Portland)/Jim Piro Wells Fargo (CA) 12/10
$50M (stockholder investment) First Independent Bank (Vancouver)/Jeanne Firstenburg Private stockholders 12/12
$30M (gift) Washington Family Ranch (Antelope)/Young Life Dennis and Phyllis Washington Foundation (MT) 12/2
$6M (donation) United Way of the Columbia-Willamette (Portland)/Marc Levy Intel Oregon and Intel Foundation (Hillsboro and CA) 12/1
$4M (stock purchase) Capital Pacific Bancorp (Portland)/Mark Stevenson U.S. Department of the Treasury 12/23
$1M (grant) Oregon Institute of Technology (Klamath Falls)/Chris Maples Kresge Foundation (MI) 12/29
$400,000 (engineering building grant) University of Portland (Portland)/William Beauchamp Collins Foundation (Portland) 12/9
$240,000 (affordable housing award) Bank of the Cascades (Bend) and Bend Habitat for Humanity/Patricia Moss, David Love Seattle Bank (WA) 12/18
$200,000 (grant) Oregon Food Bank (Portland)/Rachel Bristol Bill & Melinda Gates Foundation (WA) 12/11
$200,000 (four grants) Insignia Health (Portland); Dune Sciences (Eugene); Floragenex (Eugene); MitoSciences (Eugene) University Venture Development Fund (Salem) 12/19

List researched by Jon Bell

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

More Articles

Rapid ascent

March 2014
Tuesday, February 25, 2014
IMG 4255-2BY AMY MILSHTEIN

Kelly Dachtler, president of The Clymb, redefines outdoor retail.


Read more...

Eking out a living

News
Tuesday, April 08, 2014
04.08.14 thumb ourtable-coopfarmsBY HANNAH WALLACE | OB BLOGGER

It may be obvious, but most farmers don’t make a lot of money. According to preliminary data from the 2012 Agriculture Census, 52% of America’s 2.1 million principal farm-operators don’t call farming their primary occupation. Farm cooperatives may offer a solution.


Read more...

Spreading the wealth

March 2014
Tuesday, February 25, 2014
HiResBY PAIGE PARKER

A money management firm broadens its reach. 


Read more...

The future of money

March 2014
Tuesday, February 25, 2014
BY JAKE THOMAS

An ancient institution moves slowly into the digital age. 


Read more...

How to help your staff solve their own problems

Contributed Blogs
Friday, March 21, 2014
03.21.14 thumb coxcoffeeTOM COX | OB BLOGGER

During a recent talk to HR Directors, I asked if they saw leaders trying to solve every problem, instead of delegating to and empowering staff. Every head nodded. Every single one.


Read more...

Revolution in print, pixels and passion

News
Tuesday, March 11, 2014
RyanFrankNewsBY MARK BLAINE | OB BLOGGER

The publisher of the Emerald Media Group moves on, leaving a cutting edge media group that depends on business acumen for its survival.


Read more...

The 2014 List: The Top 33 Small Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS